IRS Announces Annual Scams

Each year the IRS announces “Dirty Dozen Tax Scams” they encounter most frequently regarding frivolous tax arguments and fraud. Here are five of the scams that impact most taxpayers.

Check Identity Theft. To no one’s surprise Identity Theft tops the IRS list of scams this year. It is a large problem at the department and vast resources are being deployed to reduce this risk. Here is a link to the IRS identity protection page should you wish to know more. IRS identity theft
Check Phone scams. This tax scam has appeared on the IRS list for many years. What is new this year, is that would be thieves are calling you and they have some of your personal information (including your Social Security number). The bottom line? Never give information over the phone to someone claiming to be from the IRS when they call.
Check Phishing emails. This recurring scam involves receiving fake emails from the IRS. Remember the IRS does not initiate contact through emails.
Check Offshore accounts. The IRS has made inroads to those hiding assets in off-shore accounts. This includes breaking the long-standing secrecy wall of Swiss bank accounts. If you have money in foreign accounts, you must understand the reporting requirements or you could be subject to substantial fines.
Check Donating to invalid charitable organizations. Prior to donating funds, make sure the charity is both legitimate and deemed a qualified charity by the IRS. After major disasters, many charitable givers are scammed into making donations to fake charities. In addition, new IRS charitable organization reporting requirements are not being followed by many organizations which makes donations to them non-deductible.

The IRS sees scams in many more forms than noted here. Should you wish more information please visit IRS.gov. Your best defense is to stay alert and ask for help prior to providing sensitive information to anyone who requests it.